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17765 Sierra Hwy
Santa Clarita, CA 91351

Extended Warranties: Are They Worth the Investment?

Yes, we do believe an extended warranty offers a logical solution for many. In fact, we generally recommend to our customers that they consider an extended warranty after their manufacturer’s program expires. If you choose a solid warranty, it can save you thousands of dollars on repairs…

When searching for a company that provides extended warranties, you should explore plans offered by your dealer, as well as third parties. The question is how do you select the right warranty for your car? Here are a few recommendations to consider:

  • Avoid inexpensive plans that charge low fees (under $500 per year). Unfortunately, most low-priced insurers are proficient at exercising excuses for disapproving claims. If you choose to consider such a plan, scrutinize the company thoroughly prior to signing an agreement.
  • Diligently examine the level of protection a plan offers, as well as the terms of coverage. Many companies offer various levels of protection. Some plans will be similar to your dealer warranty, perhaps offering as much as a 5 years/ 50,000 miles. The best plans cover the engine, transmission, suspension, brakes, radiator, water pump, and the compressor pump.
  • Be aware that many plans will only cover items that break and will usually decline payment for parts and labor when the cause is considered due to normal wear and tear.
  • Thorough plans usually cost $3,000 to $5,000 for three to five years of coverage. They usually cover more and are the easiest to work with on claims.
  • Warranties through dealers will usually look at your vehicle’s maintenance history to decide whether to approve you. The more expensive third-party plans frequently will not consider repair history.
  • Ask your repair shop which plans they recommend. We have found that consumers routinely give high marks to Fidelity and Chrysler (Chrysler offers warranty programs for non Chrysler vehicles, including German cars, through affiliates.)
  • If your vehicle has been driven over 100,000 miles, you may find it difficult to get coverage from a reliable company.
  • The best time to buy your extended warranty is just before your dealer warranty ends.
  • Most dealer-extended warranties will pay for services performed by independent shops. If you want your vehicle serviced here or at another independent, make sure you can do so prior to purchasing the plan.

The right extended warranty can save you thousands of dollars on repairs. Consider extending your coverage if your dealer warranty is about to expire, or if your car is no longer covered.

Maintenance Tip: Quality Premium Gas

Use quality premium gas and you will improve gas mileage and performance. Top-tier gas will also help guard against misfiring, overworking the vehicle’s computer and knock centers on cylinder blocks.

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17765 Sierra Highway
Santa Clarita, CA 91351